Cliff Notes
- Sir Keir Starmer confirmed that US-UK trade discussions are “well advanced” but anticipated incoming tariffs from Donald Trump, asserting the need for a careful response rather than immediate action.
- The UK government is preparing for new US tariffs set to be announced, which could potentially affect all exports, and warned it may consider retaliatory measures if no resolution is reached.
- Economic forecasts suggest that a significant increase in tariffs could reduce the UK’s Economy by 1%, prompting potential tax rises and impacting market stability.
Sir Keir Starmer says US-UK trade talks ‘well advanced’ and rejects ‘knee-jerk’ response to Donald Trump tariffs | Politics News
Sir Keir Starmer has said US-UK trade talks are “well advanced” ahead of tariffs expected to be imposed by Donald Trump on the UK this week – but rejected a “knee-jerk” response.
Speaking to Sky News political editor Beth Rigby, the prime minister said the UK is “working hard on an economic deal” with the US and said “rapid progress” has been made on it ahead of tariffs expected to be imposed on Wednesday.
But, he admitted: “Look, the likelihood is there will be tariffs. Nobody welcomes that, nobody wants a trade war.
“But I have to act in the national interest and that means all options have to remain on the table.”
Sir Keir added: “We are discussing economic deals. We’re well advanced.
“These would normally take months or years, and in a matter of weeks, we’ve got well advanced in those discussions, so I think that a calm approach, a collected approach, not a knee-jerk approach, is what’s needed in the best interests of our country.”
Downing Street said on Monday the UK is expecting to be hit by new US tariffs on Wednesday – branded “liberation day” by the US president – as a deal to exempt British goods would not be reached in time.
A 25% levy on car and car parts had already been announced but the new tariffs are expected to cover all exports to the US.
Jonathan Reynolds, the business and trade secretary, earlier told Sky News he is “hopeful” the tariffs can be reversed soon.
But he warned: “The longer we don’t have a potential resolution, the more we will have to consider our own position in relation to [tariffs], precluding retaliatory tariffs.”
He added the government was taking a “calm-headed” approach in the hope a deal can be agreed but said it is only “reasonable” retaliatory tariffs are an option, echoing Sir Keir’s sentiments over the weekend.
Tariff announcement on Wednesday
Mr Trump has been threatening tariffs – import taxes – on countries with the biggest trade imbalances with the US.
However, over the weekend, he suggested the tariffs would hit all countries, but did not name them or reveal which industries would be targeted.
